HAUPPAUGE, N.Y., May 14 /PRNewswire-FirstCall/ -- Sentry Technology
Corporation (OTC Bulletin Board: SKVY) today reported financial results for
the Company's first quarter ended March 31, 2004.
Revenues for the first quarter were $2,946,000, compared to revenues of
$3,574,000 reported in the first quarter of the prior year. While sales of
the Company's SmartTrack systems nearly doubled in the first quarter of 2004
over the same period in 2003, the reduction in total revenues was primarily
attributable to lower sales of conventional CCTV products to two of the
Company's major customers. Despite lower revenue levels, as a result of its
restructuring efforts, Sentry was able to reduce its net loss to $192,000, or
$(0.00) per share in the first quarter of 2004, compared to a net loss of
$494,000, or $(0.01) per share, in the first quarter of last year.
The reported results do not include the impact of the $2 million Brascan
Technology Fund financing or the acquisition of ID Systems Canada Inc. and ID
Systems USA, Inc., which were completed after the end of the first quarter.
"During the first quarter, we expended significant management time and
energy to complete a much needed financing with Brascan Technology Fund and to
acquire ID Systems, both of which closed on April 30th," said Peter Murdoch,
President and CEO of Sentry Technology Corporation. "Even with this
distraction, we were able to accomplish a great deal to prepare our Company
for growth in anticipation of receiving new working capital including: the
hiring of an experienced US Dealer Sales Manager, who has contracted and
trained leading manufacturer sales rep firms in the United States; the
introduction of SentryVision(R) Server, a new digital video server offering
value added performance for our primary SmartTrack traveling camera system;
and most importantly, making continued efforts to satisfy our customers who
are among the world's largest companies."
Mr. Murdoch continued, "During the first quarter, we shipped SmartTrack
systems to the world's largest company, the world's top three retail home
centers, Europe's largest retailer and America's second largest retailer. New
customers have been developed including IKEA in Spain and the first order for
SmartTrack in Brazil. SmartTrack sales where up 97% over first quarter 2003.
We are confident that the decision to concentrate efforts on our proprietary
SmartTrack system, while developing complementary products and stronger sales
channels will ensure success."
Sentry Technology Corporation designs, manufactures, sells and installs a
complete line of Radio Frequency (RF) and Electro-Magnetic (EM) EAS systems
and Closed Circuit Television (CCTV) solutions. The CCTV product line
features the SentryVision(R) SmartTrack system, a proprietary, patented
traveling Surveillance System. The Company's products are used by retailers to
deter shoplifting and internal theft and by industrial and institutional
customers to protect assets and people. The recent acquisition of ID Systems
expands the Company's product offering to include proximity Access Control and
Radio Frequency Identification (RFID) solutions. For further information,
please visit our Web site at http://www.sentrytechnology.com.
This press release may include information that could constitute forward-
looking statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Any such forward-looking statements
may involve risk and uncertainties that could cause actual results to differ
materially from any future results encompassed within the forward-looking
statements. Factors that could cause or contribute to such differences
include those matters disclosed in the Company's Securities and Exchange
Commission filings.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2004 2003
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $181 $210
Accounts receivable, less allowance
for doubtful accounts of
$312 and $304, respectively 1,763 1,482
Inventories 1,976 1,855
Prepaid expenses and
other current assets 121 126
Total current assets 4,041 3,673
PROPERTY, PLANT AND EQUIPMENT, net 176 209
OTHER ASSETS 204 211
$4,421 $4,093
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving line of credit
and term loan $1,934 $1,515
Accounts payable and
accrued liabilities 2,253 2,167
Other current liabilities 231 276
Total current liabilities 4,418 3,958
NOTES PAYABLE & OTHER
LONG-TERM LIABILITIES 198 260
Total liabilities 4,616 4,218
SHAREHOLDERS' EQUITY (DEFICIT) (195) (125)
$4,421 $4,093
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2004 2003
REVENUES $2,946 $3,574
COSTS AND EXPENSES:
Cost of sales 941 1,652
Customer service expenses 1,015 1,121
Selling, general and
administrative expenses 897 945
Research and development 160 160
3,013 3,878
OPERATING LOSS (67) (304)
INTEREST & FINANCING EXPENSES 125 190
LOSS BEFORE INCOME TAXES (192) (494)
INCOME TAXES --- ---
NET LOSS $(192) $(494)
NET LOSS PER SHARE
Basic and diluted $(0.00) $(0.01)
WEIGHTED AVERAGE SHARES
Basic and diluted 85,756 82,259
CONTACT: Peter J. Mundy
Vice President - CFO
(631) 739-2000
SOURCE Sentry Technology Corporation
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Related links:
http://www.sentrytechnology.com
Company News On-Call:
http://www.prnewswire.com/comp/494538.html
CONTACT:
Peter J. Mundy, Vice President - CFO of
Sentry Technology Corporation, +1-631-739-2000
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